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Summary of financial accounts

Annual report 2020

Trevor Edwards, Finance Director, gives a summary of the financials during the last year.

Trevor Edwards, Finance DirectorThe 2020 financial results of the CII Group reflect the unprecedented events that we all faced during the year. The nature of the Covid-19 pandemic was such as to impact the lives of everyone, the world over. The CII Group remained committed to supporting its members, students, staff and the public through the challenges.

Financial Overview

Revenue for 2020 was £36.9m representing a decrease of £8.3m or 18%, compared to 2019 when the CII Group reported revenue of £45.2m. Following previous years of sustained growth, our 2020 revenue was negatively impacted by our inability to host examinations and in-person events following the declaration of the pandemic. However, our previous years of transformation investment provided the infrastructure which allowed us to transition our operations to remote working, accelerate remote invigilation for examinations and host digital events to replace in-person events.  These initiatives have helped to mitigate the impact of the reduction in revenue, however, we also recognise that further improvement in our examination delivery is required. This remains one of our key priorities in 2021.

Financials

Our operating expenditure in 2020 was £40.9m (2019: £42.9m) which includes £2.1m (2019: £0.9m) of charges related to the amortisation of transformation costs and some transformation expenditure. The overall reduction in operating expenditure reflects the reduced activity in 2020 during the period of suspended examinations, as well as the impact of concerted efforts to reduce costs in response to the reduction in revenue.

The operating result before tax was a deficit of £4.0m (2019:  surplus £2.3m). Non-operating items was net income of £179,000 (2019: £511,000) as higher investment returns were offset by losses on fixed asset disposals. These results exclude contributions made to the CII pension scheme 1993 (“the pension scheme”) of £1.0m in both years.

Income and expenses

At 31 December 2020, the CII Group’s total accumulated funds were £34.3m (31 December 2012: £39.2m), with the reduction in accumulated funds reflecting the total comprehensive loss reported for the year. Cash and short-term deposits reduced to £31.5m at 31 December 2020 (31 December 2019: £37.7m) however, long-term investments increased by £0.9m from £5.2m at the end of 2019 to £6.1m at the end of 2020.

The pandemic has impacted most organisations in some way or another. The CII Group was able to leverage its past investment in transformation to continue delivering services to our members, students and the public. The CII’s financial objective for 2021 is to maintain the balance of quality products and service to our customers, continued investment for the future and prudent financial management.

We remain committed to the long-term viability and success of the CII and will continue to maintain the interest of our members, students and corporate customers and the wider public in our ongoing activities through this period of social and economic recovery.

Total group funds